Latest news with #Bank of Ireland
BreakingNews.ie
2 days ago
- Business
- BreakingNews.ie
Bank of Ireland pre-tax profits fall by third in first half of year
Bank of Ireland reported a 33 per cent drop in profit for the first half of the year as its net interest income declined. First half pre-tax profits fell to €721 million from €1.1 billion in 2024 following a run of European Central Bank rate cuts. Bank of Ireland shares were 1.7 per cent lower in early trading. Advertisement However, the bank upgraded its full-year net interest income guidance to 2027 on Tuesday after reporting strong loan book growth in the first half. The country's biggest lender also said its estimates in February for deposit and loan book growth of 3 per cent and 4 per cent respectively in both 2026 and 2027 were unaffected by the macroeconomic uncertainty associated with US tariffs. On Sunday, a deal between the US and the European Union, which includes Ireland, imposed a 15 per cent tariff on most EU goods. The bank's Irish loans and deposits grew by 5 per cent year-on-year in the first half, the former driven by mortgage lending where Bank of Ireland has a market leading 40 per cent share. Advertisement That prompted the upgrade of net interest income for 2025 to €3.3 billion from the prior guidance of above €3.25 billion, with the forecasts for 2026 and 2027 also nudged up to above €3.3 billion and greater than €3.5 billion respectively. The upgraded net interest income forecasts point to upside to 2026 and 2027 management and consensus expectations, analysts at Davy Stockbrokers wrote in a note. Analysts expect pre-tax profits to fall by 18 per cent for 2025 as a whole, based on an average of 12 polled by LSEG SmartEstimate. Bank of Ireland finance chief Mark Spain told Reuters that the trade deal on Sunday would not alter the bank's July 17th upgrade to its forecasts for Irish economic growth and that the removal of uncertainty may offer some upside. He added that its loan book showed there were no perceptible challenges emerging from the tariffs and that the caution larger business customers had shown at the height of trade tensions in April was beginning to dissipate.
Irish Times
2 days ago
- Business
- Irish Times
Bank of Ireland profit falls 31% amid impairment charge as tariffs weigh
Bank of Ireland reported a 31 per cent drop in net profit for the first half of the year as its net interest income declined and the bank increased loan impairment charges as US tariff-related risks weigh on the economic outlook. Still, the bank marginally increased its full-year net interest income forecast and maintained its medium-term financial targets. Bank of Ireland's net profit fell to €608 million in the first half, it said in a statement on Tuesday. While its net interest income declined to €1.67 billion from €1.8 billion for the same period last year, the result was better than the company had expected, it said. READ MORE The lender hiked its net impairment losses to €137 million from €50 million, driven by an increase in 'loan loss experience' and as management took a €40 million general provision to reflect 'the evolving macroeconomic outlook'. While Bank of Ireland's economists upgraded their Irish economic forecasts in recent weeks, this was caveated on the EU reaching a trade deal with the US that wouild leave tariffs on most Irish goods at 10 per cent. However, an accord reached over the weekend will see a 15 per cent tariff apply to most imports from the EU. Looking ahead, the bank now sees its net interest income coming in at €3.3 billion, up marginally from €3.25 billion previously forecast. It reported €3.56 billion of net interest income last year in a higher interest rate environment. It continues to expect its so-called business income – including income from its New Ireland life business, Davy, and shares of joint ventures – to expected to rise 5 per cent. 'The group had a good first half performance,' said chief executive Myles O'Grady. 'Against an uncertain international backdrop, the Irish economy is resilient. Bank of Ireland is well positioned to navigate this environment, generating strong levels of capital to support customers, grow our balance sheet, invest in the business and deliver attractive shareholder returns.' Bank of Ireland reaffirmed its full-year guidance of delivering net profit equivalent to about 15 per cent of shareholders' tangible equity in the business. Having recommenced interim ordinary dividends in 2024, the bank announced that it will pay an interim dividend of €243 million on its result for the first half. Since the start of 2023 the group has returned €2.6 billion to shareholders through a series of buybacks and dividends, it noted.
Irish Times
7 days ago
- Business
- Irish Times
New dwelling completions up 35% in second quarter, data show
There was a 35 per cent increase in new dwelling completions in the second quarter of the year compared with the same period of 2024, new data from the Central Statistics Office (CSO) show. There were a total of 9,214 new dwellings completed in April, May, and June, made up of 3,053 apartments, a figure double that of the same quarter in 2024. This brings completions to 32,717 over the past 12-months, which was the highest level since 2009. There was a 17 per cent increase in scheme houses completed, up from 3,959 to 4,643. Meanwhile, single dwelling completions rose 13 per cent from 1,342 to 1,518. READ MORE Scheme dwellings accounted for half of new dwelling completions with nearly a third apartments and 17 per cent single dwellings. Just 30,330 homes were completed during 2024, while the programme for government pledges to deliver more than 300,000 by the end of 2030. This year's target is 41,000. [ We need to confront the reality that the housing shortage can't be solved Opens in new window ] A spokesman for Bank of Ireland's economic research unit said the 'disappointing' out-turn in 2024 was primarily due to 'volatile, lumpy apartment completions figures', which bounced back in the second quarter. 'The bigger picture is that despite viability concerns there are still 16,260 apartments under construction in Dublin at end-2024, close to a two-and-a-half year pipeline,' he said. 'In contrast, housing completions have shown a steady gradual upward trend, continuing into 2025, 22,300 built over the past 12 months.' How will the updated National Development Plan shape Ireland in years to come? Listen | 35:59 Meanwhile, the spokesman added that the bank's latest analysis of MyHome data show the median home sale in July was settled 8.6 per cent above the original asking price, which was a fresh high. Close to one-in-five of transactions was settled 20 per cent or more above asking price. 'This points to more momentum in pricing than we had thought,' he said. 'So the risk to our forecast for 5 per cent house price inflation in 2025 lies to the upside. 'We also estimate transaction volumes in the first half of 2025 were up 2 per cent on the year, a partial recovery following the 3.4 per cent decline to 61,000 homes purchased in 2024. [ Drop in housing commencements was expected after 'record' year, Taoiseach says Opens in new window ] 'Completions in the first half were up 20 per cent and we need just 10 per cent growth in the second half to achieve our forecast of 34,500 completions in 2025. So the risk to our projections for residential completions probably lies to the upside.' The CSO data also show more than four in 10 completions were in Dublin, with 17 per cent in Louth, Meath, Kildare, and Wicklow. Six of the eight regions of Ireland saw a rise in completions. The largest regional increases were in the Dublin at 85 per cent; the Border (Cavan, Donegal, Leitrim, Monaghan, Sligo) at 38 per cent; the Midlands (Laois, Longford, Offaly, Westmeath) at 33 per cent; Mid-West (Clare, Limerick, Tipperary) at 25 per cent; Mid-East (Kildare, Louth, Meath, Wicklow) at 15 per cent; and South-West (Cork City and County, Kerry) at 14 per cent. The region with the largest relative increase was Dublin at 85 per cent, up to 3,822 from 2,062. The decreases were in the West (Galway City and County, Mayo, Roscommon) at 16 per cent and the South-East (Carlow, Kilkenny, Waterford, and Wexford) at 4 per cent. There were decreases in Galway City and in counties Mayo and Roscommon, where they fell 16 per cent, and also in the southeast counties of Carlow, Kilkenny, Waterford, and Wexford, where they were down 4 per cent. More than eight in ten apartment completions were in Dublin (2,528), while, in Dublin City, 97 per cent of completions in the quarter were apartments. Meanwhile, the most scheme dwelling completions were in Dublin at 1,218. The Border region of Cavan, Donegal, Leitrim, Monaghan, and Sligo had the most single completions at 240.
